Russian economy one of the fastest-growing in the world

The beginning of 2006 marked the start of an extremely bullish year. Although some say stocks tend to rise at the end of each year, by mid-December Russian indices had grown by more than 50%.

Analysts continue to review the economical situation in Russia as 2006 draws to an end. Among the state's main goals were curbing inflation, while sustaining and increasing GDP growth.

Russia’s GDP growth was upgraded twice – to an impressive rate of 6.9% – so Russia remains one of the fastest-growing economies in the world. Inflation was down from 10.9% in 2005, to less than 9% in 2006.

As for national currency, the ruble/dollar rate is at its lowest in 8 years, with the ruble appreciating around 9%. Analysts expected a rate of 25 rubles to the U.S. dollar by the end of the year. This was achieved.

Russia’s stabilization fund has accumulated more than $US80 BLN dollars. It is still used as a tool to prevent excess inflow of petrodollars from harming the economy.

As for 2007, most analysts expect a slowdown of growth, and oil prices will remain the most important factor to watch.